A Major Bitcoin Competitor Just Had One Of Its Best Days Ever

For many crypto asset speculators, Ethereum has long been regarded as the one Bitcoin (BTC) competitor that actually merits any attention. Ethereum is a project focused on more complex smart contracts rather than security through simplicity, and the network’s underlying token, known as Ether (ETH), recently had one of its best days ever relative to the Bitcoin price.

Ether’s more than 10% rise versus the BTC price on Tuesday was covered in digital asset research firm Delphi Digital‘s latest weekly report, which covers Bitcoin and greater cryptocurrency market. In the report, it is noted that Ether’s recent price run does not necesarily mean that altcoins more generally are finally about to experience a turnaround in terms of their BTC-denominated prices. 2018 and 2019 have been the two worst years on record for the prices of the most popular and longest running Bitcoin competitors.

Bitcoin’s Digital Gold Narrative

According to the new report from Delphi Digital, Bitcoin has performed much better than nearly all other crypto assets in 2019 due to the “digital gold” narrative. All of the major altcoins are down heavily against Bitcoin this year, although there are some exceptions such as Binance Coin (BNB) and Chainlink (LINK). LINK gained attention earlier this year when it surpassed 800% gains against the US dollar on a year-to-date basis, although the Ethereum-based token has since come back down to reality.

Global economic events, such a…

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Could President Trump Enact a Bitcoin Ban?

All it took was a single tweet.

One tweet and the crypto universe was buzzing about the possibility of a Bitcoin ban by way of an executive order from U.S. President Donald Trump.

This particular tweet wasn’t sent by the president, though.

It came from Tom Lee, co-founder, managing director, and head of research at Fundstrat Global Advisors. Lee is a conventional Wall Street analyst with a strong interest in cryptocurrency, especially Bitcoin. He appears often on CNBC to make bullish Bitcoin predictions.

His “Bitcoin ban” tweet was prompted by the news that the Trump administration would ban flavored e-cigarettes via the Food and Drug Administration (FDA).

Lee posted a link to a CNBC story about the e-cigarette ban on Twitter with this commentary:

“This is un-related but shows White House can issue an ‘executive order’ banning anything. And could even ban bitcoin. Not expecting it. But with current White House, there is ‘nothing out of bounds nor out of reach.'”

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The situation got crazier later in the thread when someone using the handle “C.C.Catch” commented, “100%. If btc reaches 100k today, I believe it’s likely Trump will ban it.”

Lee responded, “True. Agree.”

That was all it took to launch several articles on crypto news sites speculating on whether President Trump will ban Bitcoin when it reaches $100,000.

That leaves us with two questions:

  • Does President Trump have the power to ban Bitcoin?
  • How likely is it that President Trump would issue a Bitcoin ban?

Technically, Lee has a point in that Trump could use his executive authority to declare a ban on Bitcoin. But that’s easier said than done.

Unlike a physical product sold by retailers, as is the case with e-cigarettes, Bitcoin is a decentralized cryptocurrency. There is no central authority to shut down.

Trump could shut down U.S.-based exchanges such as Coinbase, Kraken, and the Winklevoss brothers-owned Gemini. But he can’t do anything about foreign-based crypto exchanges, many of which accept U.S. customers. It would also be very difficult to stop individuals from buying and selling Bitcoin to each other using Finland-based LocalBitcoins.com.

So a Bitcoin “ban” would make it less convenient to trade Bitcoin, but not impossible. And individuals holding Bitcoin in their digital wallets would prove tough to track down.

Whether Trump would go through with a Bitcoin ban is the more relevant question…

Why a Bitcoin Ban Is Unlikely

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Bitcoin Price Prediction of $250,000 is ‘Conservative’, Claims Billionaire Investor Tim Draper

Prominent investor Tim Draper has predicted bitcoin will experience huge price gains over the next four years, claiming the cryptocurrency grow more than 25-fold by 2023.

The venture capitalist said he may have underestimated bitcoin when he previously predicted it will reach $250,000 (£201,000) – a figure he first forecast when bitcoin was worth around $5,000 in 2018.

A remarkable resurgence in 2019 means bitcoin is currently trading at just above $10,000, though it remains a long way off its record high from December 2017 of nearly $20,000.

Speaking to cryptocurrency news show Blocktv, Mr Draper said his previous price predictions had come true and that his latest one may even fall short of bitcoin’s eventual value.

“$250,000 means that bitcoin would then have about a 5 per cent market share of the currency world and I think that may be understating the power of bitcoin,” he said.

“As it becomes easier for people to use… they’re going to make the decision that they like bitcoin better than any fiat because they know that their fiat will depreciate in value…

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Will Bitcoin’s Price Rally After Federal Reserve Rate Cut?

Bitcoin is down again, but some observers believe the losses could be reversed after a U.S. interest rate cut expected Wednesday.

The leading cryptocurrency by market value fell to lows below $10,100 yesterday, marking a downside break of the narrowing price range created near $10,300 in the three days to Sept. 15.

As of writing, BTC is changing hands at $10,150 on Bitstamp, representing a 1.4 percent drop on a 24-hour basis.

So, the bears have gained an upper hand in the last 24 hours despite record high miner confidence, and a deeper drop may unfold in the next 24 hours.

The decline, however, could end up trapping sellers on the wrong side of the market, according to some observers, who expect BTC to benefit from an impending 25 basis point U.S. rate cut on Wednesday.

For instance, Nigel Green, founder and CEO of a global financial advisory giant deVere Group, believes the cryptocurrency will pick up a strong bid in response to the Federal Reserve’s rate cut, as the reduction in borrowing costs will lower the yield (return) on the U.S. dollar.

Meanwhile, Anthony Pompliano, founder and partner at Morgan Creek Digital Assets, tweeted in August that BTC could fly high if the Fed rate cuts are followed by a government buying program (quantitative easing).

Former Wall Street Journal trader and journalist Max Keiser also believes the Fed’s continued monetary easing would send bitcoin to $100,000.

Rate cuts are inflationary in nature, meaning they reduce the purchasing power of fiat currencies.

Hence, there is a general consensus in the crypto market that Federal Reserve’s monetary easing will bode well for bitcoin, which is deflationary in nature and is set to undergo a mining reward halving (supply cut) in less than a year.

Bitcoin, however, has seldom taken cues from the Fed’s actions in the past. For instance, the Fed hiked rates by 25 basis points in December 2015. That was the first hike since 2006. The central bank delivered another rate hike in December 2016 and hiked rates four times in 2017.

Even so, BTC broke into a bull market with a convincing move above $300 at the end of October 2015 and went on to hit a record high of $20,000 by December 2017.

As such, the probability of BTC responding positively to tomorrow’s rate cut is debatable.

Also, traditional markets have priced in a 25 basis point rate cut and the FX markets will likely dump the U.S. dollar only if the Fed cuts rates by 50 basis points or signals aggressive easing over the near term. In that case, the anti-dollar sentiment may…

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Bitcoin, Ethereum, Ripple’s XRP, And Litecoin Could Be Heading Into Their Biggest Week Ever

Bitcoin and major cryptocurrencies including ethereum, Ripple’s XRP, bitcoin cash, and litecoin, could be primed for one of their biggest ever weeks as traders and investors gear up for the launch of the U.S.-based Bakkt bitcoin and cryptocurrency platform.

The bitcoin price, which has climbed some 200% so far this year, has been trading sideways over the last couple of months as market watchers eye global regulators, technology giants, and the likes of Facebook’s libra for possible signals of where the bitcoin and cryptocurrency market might be going next.

Bakkt, an Intercontinental Exchange-backed bitcoin platform, which was announced last year and boasted partners from computing giant Microsoft and coffee chain Starbucks, has been closely-watched by bitcoin and cryptocurrency traders and investors, with many hoping it will usher in a bitcoin bull run to rival the epic 2017 surge.

The bitcoin price climbed from under $1,000 per bitcoin to almost $20,000 between January and December 2017 as bitcoin mania reached fever-pitch and hopes institutional money was about to flow into crypto peaked.

After many banks and fund managers decided to take a “wait-and-see” approach to bitcoin and crypto, the bitcoin price plummeted last year, crashing to under $4,000 per bitcoin–down almost 90% from its all-time highs.

Ethereum, Ripple’s XRP, bitcoin cash, and litecoin, which along with bitcoin make up the top five cryptocurrencies by value, recorded even steeper falls and have failed to recover as strongly as bitcoin this year.

Now, Bakkt, which began allowing clients to deposit bitcoin into its warehouse at the beginning of this month, will launch its so-called physical bitcoin futures contracts on 23 September.

Some analysts and traders are expecting these physical bitcoin futures, which are contracts that pay out in the underlying cryptocurrency rather than in cash, to allow for unprecedented bitcoin and cryptocurrency growth.

“Physical” bitcoin futures mean that traders and investors are not able to sell more bitcoin than they actually have, while current bitcoin futures contracts allow more coins than there are in circulation to potentially be traded–something that some think can lead to market manipulation and traders betting against the market, known as shorting.

Bakkt, which has suffered numerous setbacks along its road to launch, initially planned to open its futures exchange in 2018 but was delayed by regulation and higher-than-expected interest.

In addition to recruiting Microsoft and Starbucks, Bakkt has…

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Researchers Have Issued A Serious Bitcoin Security Warning

Bitcoin and cryptocurrency adoption has failed to live up to expectations over recent years and fears around scams, fraud, and theft have not helped.

The bitcoin price, after its epic 2017 bull run, slumped last year–though has rebounded in 2019, climbing back above $10,000 per bitcoin.

Now, researchers have warned a staggering four out of the first five results returned when asking Google for a “bitcoin qr generator” led to scam websites–potentially furthering negative public perception around bitcoin and cryptocurrency.

If a user of one of these scam sites tries to generate a QR code for their own bitcoin address, it will create a QR code for the scammer’s wallet, researchers from ZenGo, a bitcoin and cryptocurrency wallet provider, found.

QR codes are often used to share data via a smartphones’ camera and are commonly used to quickly share a bitcoin or cryptocurrency wallet address.

“These sites generate a QR code that encodes an address controlled by the scammers, instead of the one requested by the user, thus directing all payments for this QR code to the scammers,” ZenGo’s Tal Be’ery wrote in a blog post.

“Scammers do not even bother with generating their fake QR themselves, instead they shamelessly call a blockchain explorer API to generate the QR for their address.”

Researchers calculated that some $20,000 had recently been lost to QR code scams, calling their findings “just the tip of the iceberg,” as thieves likely regularly change their bitcoin and crypto addresses to avoid…

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Ethereum Will ‘Mega Moon’ Against Bitcoin, Predicts Trader

To say that Ethereum is weakening against the king of cryptocurrencies would be a huge understatement. The ETH/BTC pair is down by nearly 50% year-to-date as it languishes in bear territory for 17 months and counting. The sentiment is so overwhelmingly bearish that some traders are happy to short the crypto pair.

Suprematic Wassie (ex_hermit)@GothBtcSinner

/ 4H
ethbtc short setup

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Nevertheless, big accounts in the Crypto Twitter community are starting to feel that the worst is over for the pair. If you’ve been HODLing, you may want to listen to what the widely-followed DonAlt has to say.

Analyst: Ethereum/Bitcoin Fractal ‘Playing Out Magically So Far’

On July 10th, DonAlt shared on Twitter a chart of the ETH/BTC pair illustrating a fractal that involves one dump to support at 1,500,000 satoshis before a “mega moon” to 20,000,000 satoshis.

DonAlt@CryptoDonAlt

hopium

I posted this a few months ago but can’t find the post anymore.
Playing out magically so far.
The ETH fractal – dump it into mega moon.

View image on Twitter
136 people are talking about this

The trader then provided an update on August 15th. At the time, the cryptocurrency was hurling towards support of 1,500,000 satoshis. In the tweet, the analyst wrote,

This is starting to get spooky now. 0.015 (1,500,000 satoshis) is really good support for ETH.

DonAlt@CryptoDonAlt

hopium

I posted this a few months ago but can’t find the post anymore.
Playing out magically so far.
The ETH fractal – dump it into mega moon.

View image on Twitter

DonAlt@CryptoDonAlt

hopium update:

This is starting to get really spooky now.
0.015 is really good support for ETH either way, the fractal is just there for additional confluence.

There is a decent chance we set at least a short/midterm bottom there in my opinion.

View image on Twitter
107 people are talking about this

Recently, the trader provided another update. It appears that the pair is respecting support of 1,500,000 satoshis. However, the analyst noted that even though the patterns look similar, a shakeout would be ideal. In the tweet, the trader noted,

How funny would it be if the meme fractal actually played out?

DonAlt@CryptoDonAlt

hopium update:

This is starting to get really spooky now.
0.015 is really good support for ETH either way, the fractal is just there for additional confluence.

There is a decent chance we set at least a short/midterm bottom there in my opinion.

View image on Twitter

DonAlt@CryptoDonAlt

hopium update:

How funny would it be if the meme fractal actually played out?
Slim chance for that, I’d personally like to see a shakeout to call a bottom.
That said it still looks very similar.

View image on Twitter
72 people are talking about this

DonAlt is not alone to have a bullish stance on the cryptocurrency. “Trader Max” (also known as Bitcoin Jack), the lead analyst at Bravado Trading, supports DonAlt’s sentiments. The trader spoke to CCN. He said…

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Bitcoin Blow As Coinbase And Ripple Crash Out Of U.S. Startup Top 10

Bitcoin’s epic 2017 bull run propelled many cryptocurrency startups into the stratosphere, but most have now crashed back down to earth.

The bitcoin price, which rose from under $1,000 per bitcoin to almost $20,000 over the course of 2017, fell sharply last year before rebounding somewhat so far in 2019.

Now, it’s been revealed bitcoin and cryptocurrency investor darlings Coinbase, a San Francisco-based crypto exchange, and Ripple, the payments group behind the XRP cryptocurrency, have crashed out of a top 10 U.S. startups list for 2019–each dropping over 20 places.

Coinbase, previously ranked third on the startup list, has fallen to 29th, while Ripple has slipped from seventh to 28th.

The ranking of U.S.-based firms, put together by professional social network LinkedIn, analyses companies’ popularity using employee growth, job seeker interest and member engagement.

Meanwhile, Gemini Trust Company, the custodian of the Winklevoss twins’ Gemini crypto exchange, and ethereum development firm ConsenSys dropped out of the list entirely from the 25th and the 26th spots respectively last year.

Both Coinbase and Ripple have struggled recently as competition, regulation and lower-than-hoped-for bitcoin and crypto adoption have weighed on their bottom lines.

Last month, London-based Barclays bank ended its relationship with Coinbase which began in March last year as it expanded into Europe.

Meanwhile, the price of Ripple’s XRP has slumped some 25% so far this year, while bitcoin has risen around 200%, with bitcoin’s dominance, a measure of its weighting compared the rest of the cryptocurrency market, now at 70% according to CoinMarketCap data—its highest in 18 months.

Ripple has struggled to keep up with expectations over recent months after a flurry of major financial services companies signed up to its products last year.

Elsewhere on LinkedIn’s U.S. startup top 10, Snowflake Computing, a cloud-based data-warehousing startup, came in at…

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Someone Just Moved a Billion Dollars in Bitcoin

Last week, an unknown person or group transferred 94,505 bitcoins valued at over $1 billion USD in a single transaction. Now, observers are scratching their heads over the question of who is responsible for the eye-popping transfer.

Whale Alert, a Twitter account dedicated to live tracking of large cryptocurrency transactions, first spotted the transfer and tweeted an alert minutes after it happened late on Thursday night, EST time.

That transaction seems to be one of the recipient address’ first, followed by dozens of smaller transactions ranging from $6,644 to $.07. For now, it’s anyone’s guess as to who is behind the transaction, as the addresses involved aren’t known to the cryptocurrency community (all Bitcoin addresses are pseudonymous but can gain recognition through re-use or public identification by the owner.)

There are only around 100 Bitcoin addresses holding more than 10,000 bitcoins, accounting for 14.95 percent of all mined coins, according to BitInfoCharts. Many of the largest holders are Bitcoin exchanges. Besides companies and institutions, there are also “whales” who have accumulated large hoards of bitcoins either through mining or savvy investing.

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The idea that a business may be involved led to the theory that Bakkt, a Bitcoin futures provider that opened a “warehouse” to store customer funds on September 6, was responsible for the transaction.

TokenAnalyst, a blockchain data analyst firm, said on Twitter that a third of the bitcoins could be traced back to Huobi—a Singapore-based cryptocurrency exchange. “Our team is looking into the validity of the claim,” said a Huobi spokesperson according to Coindesk.

On July 29th, Larry Cermak, Director of Research at cryptocurrency news outlet The Block, spotted a whale moving 142,323 BTC (valued at $1.3 billion at the time). Cermak suggested that cryptocurrency wallet company Xapo may have been responsible.

One notable element of the $1 billion Bitcoin transfer is the fee…

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Twitter CEO Jack Dorsey Made A Surprise Bitcoin Warning—While Trashing Facebook’s Libra

Bitcoin found a surprising cheerleader in micro-blogging platform Twitter chief executive Jack Dorsey last year–who has since begun steering his payments company Square towards crypto.

The bitcoin price has climbed some 200% so far in 2019 as some of the world’s biggest technology companies, led by the likes of Twitter and social media rival Facebook, have expressed interest in bitcoin and cryptocurrencies.

However, Dorsey has now warned that bitcoin “is not functional as a currency,” though still thinks bitcoin is preferable to something like Facebook’s planned libra digital currency.

“[Bitcoin is] not functional as a currency,” Dorsey warned the Australian Financial Review.

“The peaks and troughs are like an investment asset and are equivalent to gold. What we need to do is make it more usable and accessible as a currency, but it’s not there yet.”

Dorsey, who has been talking to Australian media outlets during a tour of the country to promote Square’s launch of new payment terminals there, added he is though still convinced bitcoin will eventually be adopted more widely.

“I think [bitcoin is] the best bet because it’s been the most resilient, it’s around for 10 years, it has a great brand and it’s been tested a bunch,” Dorsey said.

“As I look at all cryptocurrencies that could fill that role of being the native currency for the internet, [bitcoin is] a pretty high probability.”

Dorsey’s Square revealed last month it generated $125 million in bitcoin revenue in the second quarter of 2019.

“We love you, bitcoin,” Dorsey told investors at the time.

Meanwhile, Dorsey said he would not be supporting Twitter rival Facebook’s libra cryptocurrency, which Facebook boss Mark Zuckerberg wants to launch some time next year, if he can…

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